Energy Policy, Legislative Background, Funds and Programmes
Energy Policy
The Council of Ministers adopted on 10th November 2009 ‘Poland’s Energy Policy until 2030’, developed by the Ministry of Economy. The document contains a long-term development strategy for the energy sector, the forecast demand for fuel and energy, and an action program until 2012.
The strategy responds to the crucial challenges facing the Polish energy sector in the short and long terms. Improved energy efficiency is to reduce the impact of growth in demand for fuels and energy, which in turn will contribute to increased energy security, due to reduced dependence on imports. This also will limit the impact of energy on the environment by reducing emissions of greenhouse gases.
For each of the identified priority direction, the Ministry has formulated general and specific targets, identified activities for their implementation, and the anticipated results.
The six main directions are as follows:
1) Improving energy efficiency
Improving energy efficiency is a priority direction for energy policy. Progress in this field will be the key to the achievement of all of its objectives. The principal objectives in this scope include:
• maintain zero-energy growth
• consistent reduction in the energy demand of the Polish economy to the level of the EU-15
The Ministry of Economy intends to stimulate pro-efficiency measures in the production, transmission and distribution, and the use of energy. One of the proposed support instruments would a system of "white certificates", which provides financial benefits for those making the biggest energy savings.
In addition, the Ministry plans a dynamic development of production of electricity and heat in the high-efficiency cogeneration technology. Further actions include introducing minimum standards for appliances and energy-using products, and marking their energy intensity. The Ministry of Economy will also conduct information campaigns to promote the rational use of energy.
2) Security of fuel and energy supplies
Poland's energy security will be based on domestic fuel and energy resources, especially hard coal and lignite. This will ensure independence from the production of electricity and, in large part, heat from external sources of supply.
In the area of oil, gas and liquid fuels the document assumes diversification, which now applies not only to supply sources, but also to production technologies. Support will be given to develop technologies whereby it will be possible to acquire liquid and gaseous fuels from domestic resources.
The current forecasts on the possibility of covering future demand for electricity in Poland indicate the need to increase capacity. Commitments for the reduction of greenhouse gas emissions force Poland to look for low-emission solutions in the production of electricity.
3) Introduce nuclear power
A new field of activity is the introduction of nuclear power in Poland. In order to create conditions for the introduction of nuclear power, the Policy sets out measures aimed at creating a legal framework and organizational structure, as well as training human resources, including scientific research personnel. It will be also necessary to carry out analysis for the location of nuclear plants and radioactive waste burial sites.
In May 2010 Poland announced plans for the first nuclear power plant in Zarnowiec near Gdansk. The location has already been confirmed by the government and according to the current plans the plant will begin its operation in 2020.
4) Develop RES utilization
The document sets out the following targets: achieve 15-percent share of RES in final energy consumption by 2020, and 20-percent share by 2030. It is also planned to achieve, by 2020, a 10-percent share of biofuels of the market of transport fuels, and increase the use of second-generation biofuels.
The basic measures provided for by the document in this area is to support the generation of electricity, heat and cooling from RES and the production of biofuels. An interesting initiative, currently being drafted by the Ministry of Economy, is the programme for the construction of agricultural biogas plants.
5) Develop competitive fuel and energy markets
Competitive energy markets help reduce production costs and therefore dampen fuels and energy price increases. In this area the Ministry of Economy aims to: solve the problem of dependence on supply of natural gas and crude oil from one source, abolish the barriers faced when trying to switch the provider of electricity and gas, rebuild the model for the electricity market, and introduce market methods for establishing the price of heat.
6) Limit environmental impact
Basic measures are aimed at reducing emissions of CO2, SO2 and NOx, in accordance with the commitments assumed by Poland. The main objective in this area is to reduce emissions of CO2 to a technically feasible size without affecting energy security.
The draft document provides for establishing a system to manage national ceilings on emissions of greenhouse gasses and other substances, introducing product-specific limits on CO2 emissions in electricity and heat generation, and adopting standards to reduce the emissions in these sectors.
Legislative background
All English legislative documents are available on the website of the Polish Ministry of Economy.
Energy Law
The 1997 Energy Law marks a major milestone in the process of adapting energy economy to market principles. Its purpose is the regulation of the energy market and the national energy policy. The Energy Law establishes the base for third party access (TPA), independent power producers (IPP), renewable energy sources (RES), least cost planning (LCP), integrated resource planning (IRP), energy regulatory authority (ERA), demand side management (DSM), energy efficiency labels (EEL). One of the main targets stated in the act is to achieve efficiency in the production, distribution and use of energy and fuels.
The latest amendment was on 21.10.2009.
According to the Polish Energy Law, the Polish Government is obliged to publish every four years a document on Energy Policy. The current document (April 2009) specifies that the strategic objectives of this policy are as follows:
- energy security
- environmental safety
- improvement of competitiveness and energy efficiency
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Environmental Protection Law
The Environmental Protection Act entered into force on 27.04.2001 and its latest amendment was on 10.09.2008. The Act implements several European directives regarding environmental protection.
The legislative decree covers among other things:
- preparation of an updated national climate policy every 4 years
- preparation of local policies including activities related to climate chagne
- establishment of air protection programmes
- establishment and observance of air quality standards and emission standards for the energy sector
- environmental fees
Energy related Funds and Programmes
EU Structural and Cohesion Funds
As Poland joint the European Union on 1st May 2004, the Structural and Cohesion Funds were available between 2004-2006. National Development Plan and Strategy for Implementation of Cohesion Funds for 2004-2006 were the basic documents for implementation of Cohesion Funds.
In current programming period (2007-2013) the basic documents for implementation of Structural and Cohesion Funds are National Cohesion Strategy (National Strategic Reference Framework) and several Operational Programmes, divided into three groups: domestic, Regional Programmes and programmes of European territorial cooperation.
In the period 2007-2013 the Ministry of Regional Development will continue its role as Managing Authority for Cohesion and Structural Funds.
Within the Operational Programme Infrastructure and Environment there are two energy related priority axes:
- Environment-friendly energy infrastructure and energy effectiveness (748,0 mln Euro from CF)
- Energy security, including diversification of energy sources (974,3 mln Euro from ERDF)
Generally the energy related projects will be financed within the Operational Programme Infrastructure and Environment, however some energy aspects will be included also in Regional Operational Programmes and in programmes of European territorial cooperation.
The National Fund for Environmental Protection and Water Management
In 2009 the National Fund for Environmental Protection and Water Management was celebrating its 20th anniversary. Together with the Voivodeship Funds for Environmental Protection (WFOŚ) – it forms the backbone of the system for financing environmentally sustainable projects. This definition also includes projects involving renewable electricity generation.
The National Fund, which operates in accordance with the Environmental Protection Law, is a special purpose fund with legal personality and manages its finances independently. It finances tasks relating to environmental protection and water management from its own funds and from monies otherwise obtained. The National Fund is the largest institution in Poland that cooperates with international financial partners and handles foreign funds designated for environmental protection.
The loans are awarded through calls for proposals from January 2009 to December 2012.
EcoFund
The EcoFund was founded by the Ministry of Finance in 1992 and administers the money derived from the conversion of a part of the foreign debt of Poland into a fund intended to support environmental protection projects. To date, decisions to join the Polish-debt-for-environment-swap scheme were taken by the USA, France, Switzerland, Italy and Norway. The Fund subsidizes environmental projects which are important for the region and the country and which help to attain ecological goals recognized by the international community.
The Foundation consists of two responsible bodies:
- EcoFund Council
- EcoFund Board
The following five environmental protection sectors have been declared in the Eco Fund's Statutes as priority areas:
- Reduction of sulfur dioxides and elimination of the low sources of such emissions, construction of gas/steam turbine sets, reduction of air pollutant emissions from automotive vehicles in towns ( air protection );
- Reduction of the pollutant inflow to the Baltic Sea and protection of drinking water resources ( water protection );
- Reduction of the emissions of gases that cause global climate changes ( climate protection );
- Protection of endangered fauna and flora species and parks ( Nature protection );
- Waste management
Polish Environmental Partnership Foundation (PEPF)
The Polish Environmental Partnership Foundation (PEPF) acts as an independent, not-for-profit and self-governing foundation based in Kraków.
The goals of the PEPF:
- providing financial, organizational and in-kind support to not-for-profit organizations and local communities.
- providing training, advice and consultation to persons involved with or connected to not-for-profit organisations and local communities so as to improve their professional skills and expertise in environmental activities, notably through organizing and financially supporting fellowships in Poland and abroad.
- providing financial, organizational, in-kind and other support to facilitate exchange of professional, scientific and other experience in the environmental field, including also training and popularisation activities in Poland and abroad.
- providing financial and other support for information dissemination, publications, and exhibitions.
- promoting and implementing cross-sector partnerships (i.e. industry, business, government, local government, academic, voluntary etc.) for implementing projects that result in environmental improvement, as well as economic and social revitalisation of local communities.
- cooperating with individuals and institutions in Poland and abroad working to realise the goals of the Foundation.
Thermo-Modernisation Programme and Fund
The Thermo-Modernisation Programme and Fund, which have been in operation since 1999, provide technical and financial support for energy end-use improvements in residential buildings. Projects eligible for support include:
- end-use improvements in residential buildings,
- reduction of energy losses in heat distribution networks and
- the substitution of conventional energy sources by non-conventional sources, including renewable energies.
Generally said, it provides State guarantees for loans taken out for investments in energy efficiency and renewables, and it helps borrowers in paying off these loans.
The Fund is operated by the Bank of National Economy (BGK).
Environmental Protection Bank (Bank Ochrony Srodowiska S.A. - BOS)
The Environmental Protection Bank (BOS) is a universal, commercial Bank specializing in financing activities connected with environmental protection and water management.
Soft loans are provided for projects with real environmental benefit, including:
- Construction of small sewage treatment plants, sewerage systems and installations for the production of bio-fuels
- Purchase and installation of biomass boilers (<5MW), along with the production of biomass, as well small-hydro
- Utilization of renewable sources of energy and heat (geothermal, solar, photovoltaic, heat pumps, usage of waste)
- Utilization of waste products;
As well as:
- Loans for the purchase of environmental protection equipment and products;
- Loans to upgrade household energy efficiency;
- Loans to companies involved in environmental projects as third party contractors Environmental project consultancy.
